Insurance Industry Employment Alarming Numbers – Shocker

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Insurance Industry Employment Figures  Should Be A Wake Up Call 

These insurance industry employment trends should sound off a few alarms.  Recently, I was reading the July issue of AM Best’s Monthly Magazine.

Picture Alarm Insurance Industry Employment Clock
Wikipedia Commons – Jorge Barrios

 The July Issue covers the Millennial paradox among other concerns.   One of the article covers a very salient point.   The industry employment threats abound now with the attrition and aging of the workforce versus the slow pace of the new hires. 

One table on page 3 of the article stopped the show.    The numbers from the Baby Boomer’s Exit table*:

  • 74% increase in the number of employees aged 55 and older in the last decade (ouch!)
  • 25% of the insurance industry workforce consist of employees aged 35 or less
  • 50% of the industry workforce will be retired by 2030.  
  • 20% of experienced underwriters will retire in the next few years 
  • And the grande finale —are you ready for this one–-70% of insurance adjusters age > 40!   

Let us cover those  fascinating insurance industry employment numbers one more time.

The 74% number alone rings an alarm bell with me.   I have just joined that group over the last year.   Attending a safety and risk management conference a few years ago opened my eyes.  No one under 40 showed up for the conference.   Everyone was the same people I talked with and had seen over the last 20 years.  There were no new faces.    

The second bullet point aligns with the first one.   I have experienced this at many conferences lately.  Where was the younger crowd?  I was told possibly that companies send only Senior level people to the conferences.  I find that hard to believe.  Why?  When I attend conferences outside of the insurance industry, the 35 and younger attendees are out in force. 

Alarm Bell Insurance Industry Employment In Red Color
Wikipedia Commons – BrokenSphere

The third bullet point could be allayed with the fact that technology may replace some of the workforce.   However, 50% coverage is an illusion.  

The fourth bullet point shows the insurance underwriting industry losing 20% of the workforce.  Once again, I have been told technology will replace much of this function.   Twenty years from now this could possibly happen, but not in the next few years.   

The fifth bullet point, which made me write this article, shows a real crisis in one area the insurance industry must heed – only 30% of the adjusters are under age 40. (Double ouch).   I was informed once again that this shortfall can be withstood by the increase in technology.   However, the insurance industry  cannot make this ground as insurance seems to be far behind in technology.   I have written many articles on the lack of the technology in Workers’ Compensation.  

One wonders what the solution will be ten years from now.  

*Credits should be given to McKinsey and Co., Insurance Careers  movement, Bureau of Labor Statistics, The Jacobson Group, Deloitte, and The Institutes for the table as AM Best used them to create the table. 

©J&L Risk Management Inc Copyright Notice

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Table of Contents

Related...

James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

Subscribe

Get the latest workers' comp news FREE!

Name
This field is for validation purposes and should be left unchanged.